In a strategic move to strengthen global supply chains, Abu Dhabi’s sovereign investor ADQ (Abu Dhabi Development Group) and Orion Resource Partners have announced the creation of a $1.2 billion joint venture. The initiative will focus on investing in and securing the supply of strategic metals and critical minerals. These are crucial for industries worldwide.

Investment in Essential Minerals for Global Supply Chain Stability and Energy Transition

The 50-50 partnership, based in Abu Dhabi, will deploy capital over the next four years. They will target emerging markets in Africa, Asia, and Latin America. The joint venture, OMF (ME) JV, will invest across various asset classes, including equity, senior debt, and production-linked instruments like royalties, streams, and offtakes.

The focus will be on securing essential minerals, such as copper, high-grade iron ore, and other critical commodities that are vital for both global economic stability and the ongoing energy transition. As demand for clean energy solutions continues to grow, the need for these resources has become more pressing. This joint venture aims to ensure a steady supply of such minerals. Consequently, it positions ADQ and Orion at the forefront of meeting global demand.

Headquartered at the Abu Dhabi Global Market (ADGM), the joint venture will be part of ADQ’s newly established Infrastructure & Critical Minerals cluster. This cluster also includes investments in Alpha Dhabi Construction Holding and Plenary Group. It aims to enhance the resilience of Abu Dhabi’s economy and support the growth of downstream sectors like manufacturing and clean energy by securing the necessary raw materials.

Hamad Al Hammadi, Deputy Group CEO at ADQ, explained, “As a long-term investor, we are committed to ensuring that our portfolio companies succeed in an ever-changing operating environment.” The partnership with Orion Resource Partners is a key part of ADQ’s strategy to diversify investments and contribute to the growth of critical industries.

Orion Resource Partners’ founder and CEO, Oskar Lewnowski, highlighted the venture’s importance in supporting global decarbonization efforts and securing resources for sustainable production. He added, “Through Orion Abu Dhabi, we are bringing our successful partnership model to secure critical material supply chains and contribute to long-term value for the UAE economy.”

With this joint venture, ADQ and Orion are poised to significantly expand their investment portfolios. They aim to secure the supply of essential minerals needed to ensure global economic stability and support the energy transition.